Freight News:
Norfolk Southern funds nearly $500 million in sustainability projects
Norfolk Southern funded nearly $500 million for sustainability-related projects in 2021 through the issuance of its green bonds.
The projects, some directly related to sustainability and some that include sustainability as an end result, include:
- $275.6 million to fund DC-to-AC locomotive power conversions, which NS says improves fuel efficiency by up to 25%. It also reduces carbon emissions from existing locomotives by about 200 tons, when compared to producing a new AC locomotive.
- $99.5 million in intermodal facility improvements aimed at converting volumes from truck to rail.
- $10.9 million to further locomotive fuel management initiatives, which will support NS’ efforts to reduce carbon emissions intensity by 42% by 2034 and help NS meet its science-based target.
- $3.4 million to build upon company initiatives to restore and protect vital stream and wetland ecosystems.
The $496 million in funding for these projects came from NS’ (NYSE: NSC) issuance of green bonds in 2021. An overview of the funded projects is available here.
“Sustainability is in our company’s DNA. Our industry-first green bond offering funds projects that align our efforts to reduce carbon emissions and advance sustainable business practices, all while delivering long-term value for our customers, communities and shareholders,” said NS CFO Mark George.
The publication of the report follows other recent sustainability-related initiatives at NS. In March, the railroad revamped a carbon calculator that helps customers and shippers gauge the carbon emissions their shipments produced, and in December 2021, the company said it would be partnering with railcar manufacturer Greenbrier (NYSE: GBX) and U.S. Steel to work on producing a more sustainable gondola car in anticipation of the eventual retirement of the existing fleet.
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Editor: Joanna Marsh